Opinion

The next industrial revolution will be driven by innovation, not nostalgia

Dr Hans Krattenmacher, chief innovation officer at global drive technology company SEW-EURODRIVE, discusses why manufacturers need to leave hardware behind, embrace new technology, and get with the times
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Dr Hans Krattenmacher

Video may have ‘killed’ the radio star back in 1979, but by the time the 21st century came along the game was changed completely.

The music video itself is under threat now too – with five MTV channels shutting down in the UK and Europe at the end of this year, signalling curtains for the visual-led era of music consumption.

Over the past few decades, we’ve seen vinyl replaced by CDs, CDs replaced by digital music stores, and digital music stores replaced by streaming. The music industry, like a select few others, is firmly moving with the times.

Yes, physical media is still alive, but those who crave convenience over nostalgia switched to streaming long ago. So why, when technology is developing at a rapid pace, are sectors like manufacturing still stuck in the past?

Despite massive advances across the board, manufacturing remains one of the least digitally mature industries in the UK and USA. We may believe we are advanced, but most factories are still hardware-driven and far from fully digital.

There’s a clear gap – not in capability, but in adoption. Industry 4.0 has improved flexibility, but recent supply chain crises exposed major weaknesses: lack of transparency, poor materials data, and inability to quickly reschedule production when shortages occur. This is the consequence of designs built on the assumption that materials will always be available.

So, what’s holding the manufacturing sector back from tech adoption?

It's certainly not desire. A recent joint report from The Manufacturer and Barclays found that whilst 56 per cent of manufacturers perceive UK manufacturing productivity to be in decline, half are still prioritising digital transformation over the next 12 months.

That focus reflects a clear intention: progress through innovation, rather than nostalgia. I have no sentimentality for making things harder than they need to be. I can’t say I’ll ever yearn for more cogs, wires, and complication, and neither should the rest of the industry.

Industrial automation is on the cusp of a seismic shift. The Industrial Internet of Things (IIoT) is now a tangible reality, using interconnected sensors, devices, and platforms to collect, analyse, and act on real-time data across factories.

This evolution signals something beyond just a technical upgrade. We now need to completely redefine how manufacturing thinks, works, and competes in the modern world.

Why manufacturers should embrace the digital convenience transforming other industries

The IIoT transformation is set to define the next era of production, driven by four powerful forces: deglobalisation, demographic change, decarbonisation, and digitalisation. Together, these shifts will fundamentally reshape how manufacturers approach automation and future-proof their operations.

We’re already seeing the first signs of this shift. Recent supply chain struggles have exposed cracks in globalisation, pushing manufacturers to make the move to more decentralised production models that can withstand the impact of worldwide disruptions.

At the same time, the pressure of decarbonisation – a term which has been everywhere for the past few years – means factories are striving to adopt greener, more resource driven operations. Net zero can no longer be brushed aside as a distant goal – targets are fast approaching, and meeting them isn’t just a moral imperative, but a strategic necessity.

And just like in my earlier example of the music industry, demographic change is also leaving its mark on manufacturing. The same way that CDs have been left to gather dust, younger generations are dismissing the idea of putting years of service into engineering roles, shrinking the skilled workforce at a time when productivity is already in decline.

The most critical shift is therefore digitalisation. We now need automation systems that help fewer people manage greater complexity, building user-friendly digital ecosystems that make work simpler, not harder.

Bands who choose not to use streaming services are few and far between. In manufacturing, the same should be true for the adoption of digital technology.

But how does tech become the norm, not the exception?

For a start, digitalisation in manufacturing is no longer optional. It’s a direct driver of competitiveness, and companies who delay its implementation risk being left behind.

A core limitation of many factories across the world is their over-reliance on hardware and being far too dependent on using physical components for control.

What once worked well is now a barrier. As skills shortages deepen, and experienced engineers retire, younger workers are struggling to get to grips with mastering complicated systems which take years to learn.

At SEW-EURODRIVE, we’re shaping our automation strategy around the reality of this change. We’ve switched our focus to software-defined factories – highly flexible and adaptable production environments that are built upon software rather than hardware.

Software-defined automation comes hand-in-hand with this. Centred around building systems that make people more effective, it focuses on intuition, allowing access to automation through a single, easy-to-use interface, regardless of which hardware supplier is used.

Together, these provide the foundation for efficiency, adaptability, and growth – three essential qualities in today’s rapidly changing global manufacturing landscape.

As industries evolve, clinging on to outdated systems only stifles innovation. Vinyl may have had a resurgence over the past decade, but clunky factory hardware is unlikely to get quite the same legion of fans clamouring for rare parts and re-releases.

It’s time the manufacturing industry said goodbye to Yesterday. The digital revolution is here to stay.

Sources:

  1. The Guardian (2025): https://www.theguardian.com/music/2025/oct/18/no-one-makes-money-from-them-with-mtv-channels-switching-off-is-the-music-video-under-threat
  2. Digital Manufacturing Productivity Report (2022): https://info.ibaset.com/en-gb/digital-manufacturing-report
  3. Mind the Gap: Closing the productivity divide in UK manufacturing (2025): https://www.themanufacturer.com/reports-whitepapers/mind-the-gap-closing-the-productivity-divide-in-uk-manufacturing/

Written by
December 9, 2025
Written by
Dr Hans Krattenmacher
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